Assignment:
Someone complained to you that a twenty ounce bottle of water cost $5 to purchase during a concert at a local sports arena, yet an identical bottle of water cost only $2 to purchase at a convenience store down the street from the arena building. Which of the following is the best and most likely explanation for this $3.00 difference between the same item in two different locations?
People selling bottles of water at concerts are often angry with concert audience members, and thus raise the price to punish them.
A. The water being sold at the concert is older, having been in inventory longer.
B. The additional $3.00 reflects the value of delivering a bottle of water to the arena building and making it convenient for sale to concert audience members during that particular concert.
C. The price of bottled water at live concert events is determined by federal law, whereas the convenience store can determine its own prices.
D. A different kind of water is being sold at the concert, in a different kind of bottle.